Marketing Factoids

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OCT 1

Ducking the Price War, Target Highlights Fashion

Instead of fighting on Wal-Mart's terms, discount retailer Target is accentuating its core strength: Affordable chic

BusinessWeek, October 1, 2008 — Just a couple of years ago, Target (TGT) was the darling of discount shoppers. The retailer profited from exclusive, stylish goods created by such big-name designers as Isaac Mizrahi and Michael Graves. But in today's rocky economy, Target seems out of fashion. Same-store sales are down, and net income is sinking. Even Target executives pin the troubles in part on the widespread perception that the chain is more expensive than Wal-Mart (WMT) because of its focus on trendy clothes and home accessories.

So how is Target revising its sales strategy as it heads into the holidays? It is actually ramping up its designer collection, with more labels than ever. But the $63.4 billion company is also recalibrating its marketing pitch to highlight low prices. In other words, customers can have hip brands and afford them, too.

Categories: Brand Strategy, Marketing Strategy
Tags: Target, Recession

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